The cryptocurrency market remains under pressure this trading week, Bitcoin dipped below $ 43,000 for a moment and the risk of further declines is not over yet. This situation also negatively influences the price of Ethereum ETH / USD, Ripple XRP / USD and Cardano ADA / USD, and traders need to be very careful when opening their positions.
If the price of Bitcoin falls below the $ 45,000 support level again, it would be a firm ‘sell’ signal, and this would add further pressure to the entire cryptocurrency market. The governor of the Bank of Mexico, Alejandro Díaz de León, said Thursday that cryptocurrencies are high-risk investments and a low store of value.
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These comments suggest that Mexico will not follow El Salvador in the short term in adopting digital currency as a parallel legal tender.
“Whoever receives bitcoins in exchange for a good or service, we believe that (transaction) is more similar to barter because that person is exchanging a good for a good, but not really money for a good. People will not want their purchasing power, their salary goes up or down 10% from one day to the next, ”said the Governor of the Bank of Mexico, Alejandro Díaz de León.
Ethereum (ETH) continues to trade above $ 3,000 support
Ethereum (ETH) has weakened from $ 4,025 to $ 3,015 in less than several days, with the current price hovering around $ 3,471.
If the price falls below the $ 3,000 support, it would be a strong “sell” signal, and the next target could be around $ 2,800. The risk of further declines is probably not over, but if the price jumps above $ 3,700, we have the path open to resistance at $ 4,000.
Ripple (XRP) is currently trading very close to the strong support level at $ 1
Ripple (XRP) is currently trading very close to the strong support level at $ 1, indicating that the price could weaken further. If the price breaks this support level, it would be a very strong “sell” signal, and the next target could be around $ 0.80.
Traders should use stop loss and take profit orders when opening their positions because the risk is currently high. On the other hand, if the price jumps above $ 1.35, it could be a very good opportunity for short-term traders, and the next target could be around $ 1.50.
Cardano is still under pressure
Cardano (ADA) has weakened from $ 3.09 to $ 2.02 since Sept. 2, with the current price hovering around $ 2.5.
There are some obvious risks when it comes to buying ADA these days, and if the price falls below the $ 2 support, it will probably hit the $ 1.5 level soon.
All major cryptocurrencies have weakened this trading week, and this situation also puts pressure on the price of Ethereum, Ripple, and Cardano. The governor of the Bank of Mexico, Alejandro Díaz de León, said Thursday that cryptocurrencies are high-risk investments and a low store of value.
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